Hello Jose, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You have the position correct save that the non cumulative Annual Exempt Amount (AEA) is actually 11.1K and you have omitted to include Lettings Relief (LR) which is available up to 40K.
If the property is gifted to you a Potentially Exempt Transfer (PET) is created in their Inheritance Tax (IHT) affairs. PETs run off at a taper over seven years and in the event of a decease within this period are added back to the donor's estate for IHT purpose. PETs are the first to suffer IHT and if the estate is insufficient to meet the IHT on the PET the liability cascades down to the beneficiary for immediate settlement.
The classic defence against a PET is a reducing term life insurance, but your parents' ages may make premium levels prohibitive.
I am so sorry to have to rain on your parade.
Love to talk but I am answering you from a location 6 hours ahead of BST so the cost would be prohibitive.
Normally, yes, just away at present.
The transfer to you is a disposal for Capital Gains Tax purposes and your parents must pay that tax. IHT is an entirely separate tax on death. Both will have to be paid.
No, the AEA is non cumulative, it is a use it or loose it allowance. The exposure to tax could be reduced slightly by making the transfers in different tax years. It night be far more economic not to make the transfer at all.
Annual Exempt Amount, the 11.1K.
Yes, but the AEA is actually 11.1K.
Whichever way you turn there will be exposure to tax. Always bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes.
I could not say, I am not the Chancellor of the Exchequer.
Remember that the transfer of a house to children on death is rising from 2017 to 2020 to one million from the current IHT 325K limit.
There really isnt a way around that save your parents living long enough to avoid the seven year rule.